Cathie Wood just released her holdings in this fund and is set to open trading today during the market open. The number 1 listing in this fund is a company called Trimble, which is a company that delivers products and services that connect the digital world.
I released a blog post about my belief the space industry will explode in the future and ARKX just confirms my prediction.
What’s In the Fund?
Right away, after looking through the holdings, I see some stocks that pop out to me. Katos defense and security, Lockheed martin, Iridium and Airbus. Cathie Wood included some big names in this portfolio, but surprisingly only included 1 stock I have in my little space portfolio, which was Virgin Galactic.
I’ve included the complete listing in this post, but you can see there are 38 total stocks that make up this ETF. Boeing and Atlas Crest, which is a SPAC merging with Archer, can be found as well.
In total, there are about 7 or 8 stocks that actually relate to space, mostly focused on popular companies like Amazon, Deere and Netflix.
Why So Few Space Stocks?
This is pure speculation, but I believe Cathie Wood only sprinkled space stocks into this fund because it’s still too early for this industry. I think in the next 5-10 years we’ll be seeing explosive growth in these stocks, but it will take a little while longer to get there.
The performance of space stocks is slow and something investors don’t like to see when investing in an ETF. My thought is that Cathie Wood pumped up this fund with popular stocks to beef up her portfolio in the meantime.
She even included one of her own ETF in this ETF. Almost feels like inception!
You’ll find companies like Autodesk, Workhorse and Alphabet. All stocks that have performed well, but not directly related to space. I think overtime she will be cycling in more and more of these stocks as the industry starts to heat up.
Should You Invest in ARKX?
So the next question is should you invest in ARKX? Now I am no professional and this is entirely my opinion, but no, you shouldn’t invest in this ETF. I think at this point in time if you are interested in investing in this industry, you should research individual stocks and invest in them.
That is what I did and I think I will be sticking to that strategy. There are a total of 6 space stocks in my small portfolio. These stocks are:
- Holicity (Astra)
- Stable Road Acquisition (Momentus)
- Virgin Galactic
- Maxar
- New Providence (AST SpaceMobile)
- Gilat
These are the companies I believe in and will give me the most gains in the long-term. I don’t expect to see any crazy gains in the next few years, but I wanted to lock in these low prices right now. I’m a patient guy and I think this will pay off in the end.
You’ll notice I invested in a lot of SPACs. I don’t normally like to do this, but the industry is still so new and many are relying on SPACs to get them public. My 2 biggest holdings among these 6 are Holicity, which is merging with Astra, and Virgin Galactic.
Final Thoughts
I was at first disappointed when I read Cathie Wood was opening up her ETF for trading this week because I wanted to increase my positions before she interfered and pushed the prices up. But it turns out she only listed 1 of the companies I’m invested in. It’s not that I didn’t want her to help move the prices, but I wanted more before that happened.
Her ETF is very lacking right now, but I can’t blame her since there are so few public space companies and the field is still growing. Padding the fund with bigger companies is a smart move to pump up the gains, but she should have probably waited longer before started this fund.
We’ll have a few years before the prices start to skyrocket in my opinion.
